MGE Energy Inc (MGEE)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 718,822 | 585,246 | 614,211 | 519,303 | 523,741 |
| Total stockholders’ equity | US$ in thousands | 1,140,070 | 1,081,670 | 1,027,470 | 976,000 | 855,676 |
| Debt-to-equity ratio | 0.63 | 0.54 | 0.60 | 0.53 | 0.61 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $718,822K ÷ $1,140,070K
= 0.63
The debt-to-equity ratio for MGE Energy Inc has fluctuated over the past five years. In 2023, the ratio increased to 0.63 from 0.54 in 2022, indicating that the company's reliance on debt relative to equity has risen. This suggests that the company may have taken on more debt compared to shareholder equity, potentially increasing financial risk.
Comparing to the historical trend, the current ratio of 0.63 in 2023 is higher than the ratios in 2021 and 2020 but lower than the ratio in 2019. This indicates a moderate level of debt leverage compared to equity. It is important for stakeholders to monitor this ratio closely to ensure that the company can effectively manage its debt levels and maintain a healthy balance between debt and equity financing.